American Apparel’s direct competitors in the apparel manufacturing industry would be Fruit of the Loom and Hanesbrand. Urban Outfitters is another direct competitor of American Apparel in the retail-clothing sector. American Apparel competes in the wholesale market with products by Fruit of the Loom and Hanesbrand but the other brands are comparable to the products found at retail stores such as Urban Outfitters
American Apparel does business in an exceptionally competitive landscape. AA has many competitors; however, a few of their main competitors are H&M, Arcada, Inditex, Benetton and Gap. These companies not only offer similar products to American Apparel, but also target a very similar demographic. Their products are intended to appeal to young, “metropolitan” adults between the ages of 20-30. These consumers are mostly nearing the end of their education and moving on to careers in the workforce. They mostly do not have access to a large disposable income, therefore clothing cannot be so expensive that it will be unable to be purchased regularly. However, because of their age, they still want high quality products. Because of these seemingly contradictory considerations, companies like American Apparel and its competitors have an increasingly difficult time straddling the line between those two.
The specialty retail, online retail and wholesale apparel businesses are each highly competitive. The apparel industry is characterized by rapid shifts in fashion, consumer demand, and competitive pressures, resulting in both price and demand volatility. American Apparel believes that their emphasis on quality fashion essentials mitigates these factors.
Retail operations compete on the basis of store location, the breadth, quality, style, and availability of merchandise, the level of customer service offered, and the price of goods for similar brand name quality. While the company believes that the fit and quality of American Apparel garments as well as the broad variety of colors and styles of casual fashion essentials that they offer help differentiate them, the company competes against a wide variety of smaller, independent specialty stores, as well as department stores and national and international specialty chains. Companies that operate in this space include, but are not limited to: The Gap, Urban Outfitters, H&M, Uniqlo and Forever 21. Many of these companies have greater financial, marketing, and other resources when compared to American Apparel.
The wholesale business competes with numerous wholesale companies based on the quality, fashion, availability, and price of the wholesale product offering. These companies include Gildan Activewear, HanesBrands, Russell Athletic and Fruit of the Loom. Many of these companies have greater name recognition than American Apparel in the wholesale market. Many of these companies also have greater financial and other resources when compared to American Apparel.
Along with the competitive factors noted above, other key competitive factors for American Apparel’s online e-commerce operations include the success or effectiveness of customer mailing lists, social media acceptance, advertising response rates, merchandise delivery, web site design and web site availability. The online e-commerce operations compete against numerous web sites, many of which may have a greater volume of web traffic, and greater financial, marketing, and other resources.
Retail operations compete on the basis of store location, the breadth, quality, style, and availability of merchandise, the level of customer service offered, and the price of goods for similar brand name quality. While the company believes that the fit and quality of American Apparel garments as well as the broad variety of colors and styles of casual fashion essentials that they offer help differentiate them, the company competes against a wide variety of smaller, independent specialty stores, as well as department stores and national and international specialty chains. Companies that operate in this space include, but are not limited to: The Gap, Urban Outfitters, H&M, Uniqlo and Forever 21. Many of these companies have greater financial, marketing, and other resources when compared to American Apparel.
The wholesale business competes with numerous wholesale companies based on the quality, fashion, availability, and price of the wholesale product offering. These companies include Gildan Activewear, HanesBrands, Russell Athletic and Fruit of the Loom. Many of these companies have greater name recognition than American Apparel in the wholesale market. Many of these companies also have greater financial and other resources when compared to American Apparel.
Along with the competitive factors noted above, other key competitive factors for American Apparel’s online e-commerce operations include the success or effectiveness of customer mailing lists, social media acceptance, advertising response rates, merchandise delivery, web site design and web site availability. The online e-commerce operations compete against numerous web sites, many of which may have a greater volume of web traffic, and greater financial, marketing, and other resources.